Which of the following statements is false? a. The contribution margin ratio is particularly valuable in situations in which the dollar sales of one product must be traded off against the dollar sales of another product. b. Products that yield the smallest contribution margin per dollar of sales are the most profitable. c. The contribution margin ratio shows how the contribution margin will be affected by a change in total sales. d. The contribution margin ratio is the contribution margin expressed as a percentage of sales.

Which of the following statements is false? a. The contribution margin ratio is particularly valuable in situations in which the dollar sales of one product must be traded off against the dollar sales of another product. b. Products that yield the smallest contribution margin per dollar of sales are the most profitable. c. The contribution margin ratio shows how the contribution margin will be affected by a change in total sales. d. The contribution margin ratio is the contribution margin expressed as a percentage of sales.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4MCQ

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